Sprint has over 57 million connections
As mentioned in Part 2 of this series, Sprint Corporation (S) is looking to improve its customer experience with better network performance. It is also providing offers such as its industry-first leasing program and All-In Wireless plans. At the end of 1Q15, Sprint has 56.8 million connections with 30 million postpaid, 15.3 million prepaid, and 11.5 million wholesale and affiliate connections.
Net additions were 675,000 for 1Q15 in comparison to net losses of 220,000 in 1Q14. Retail net losses on the Sprint Platform were 56,000 compared to net losses of 723,000 in 1Q14. Similarly for the wholesale and affiliate segment, net additions were 731,000 in 1Q15 compared to net additions of 503,000 in 1Q14.
Sprint’s total subscriber base grew by 5.7% YoY to 57.67 million. It could not surpass T-Mobile’s (TMUS) subscriber base of 58.9 million and slipped to fourth place in the US telecom market, with Verizon (VZ) and AT&T (T) taking the top two places.
Net additions increase in postpaid and decrease in prepaid segment
For 1Q15, Sprint saw a net addition of 310,000 connections in comparison to net losses of 181,000 in 1Q14 and net additions of 211,000 in 4Q14. The increase in net additions is mainly attributed to lower churn as well as higher prime credit quality gross additions. The churn rate was at a record low of 1.56% compared to 2.05% in 1Q14 and 1.84% in 4Q14. This shows an improvement of 49 basis points YoY due to the improved quality of recently acquired customers and network improvements.
In the prepaid segment, net losses were 366,000 in 1Q15 compared to net losses of 542,000 in 1Q14 and net additions of 546,000 in 4Q14. The YoY improvement was primarily due to fewer losses in the Assurance brand. Its sequential decline was driven by seasonality and less promotional activity in the Boost brand segment. The churn was 5.08% in 1Q15 compared to 4.44% in 1Q14 and 3.84% in 4Q14.